Monday, June 14, 2010

Credit implications for states affected by the BP oil spill are negative, but are offset in near term by support from BP, Moody's says

3:17 (Dow Jones) Credit implications for states affected by the BP oil spill are negative, but are offset in near term by support from BP, Moody's says. Ratings agency says Louisiana is most at risk "given its proximity to the well and its economic reliance on undersea oil production." About two-thirds of the deepwater rigs affected by the government's deepwater-drilling ban operate near Louisiana. "We expect oil industry job losses may be offset in the near term by employment gains in the clean-up effort," Moody's says. "The Obama administration contends that BP should compensate idled oil workers, but the company's legal obligation to do so remains unclear." (kelly.nolan@dowjones.com)